We realize that many individuals, although they have had Infinite Banking or IBC policies for many years, they still fail to implement IBC the way that Nelson Nash intended.
In this blog, we are going to cover many of the truths in Nelson Nash’s “Becoming Your Own Banker”.
To successfully implement Infinite Banking, it requires patience, discipline, long-range planning and understand very well the concept of “delayed gratification”. The common man has become so infatuated with living for today that the importance of savings – or creating capital – is all but a lost value. Remember, IBC is not a procedure to “get rich quickly”.
You should be aware that you “finance” everything you buy. You either pay interest to someone else or if you pay cash, you give up interest you could have earned. Remember that your capital has a cost which should be no less than what a traditional bank charges you. IBC is all about how to create your own banking system so you can control 100% of your financing needs. The book also demonstrates that your need for finance, during your lifetime, is much greater than your need for protection; hence, the initial emphasis in cash value over the death benefit during the early years of your IBC policy. Wealth must reside somewhere. What better place to have it reside than in your IBC policy?
“Becoming Your Own Banker” is not about investments of any kind. It is about how one “finances” the things of life, which can certainly include investments. For those clients that invest in real estate, you should pay the loan interest rate annually, and your total loans as soon as possible so you free your cash value for your next policy loan to invest. “Plan as if you are going to live forever and live as if you are going to die today”.
As Nelson Nash expressed, “the Infinite Banking Concept is a major paradigm shift for most folks. It will require several thorough readings for a full understanding of its message”. “It is an exercise in imagination, reason, logic and prophecy”.
You should know that during the first policy years – typically the first two years – your increase in cash value per year may be lower than the premium you have paid during that year. The concept that an IBC policy breaks even is the year in which the total cash value is equal to or greater than the total premiums paid. The earlier an IBC policy breaks even, the more cash efficient it is designed based on the amount of premiums paid and the age and rating of the insured.
We design the IBC policies with the Automatic Premium Loan option which allows your policy to pay for the base premium through a policy loan, assuming you have enough cash value in your policy, instead of paying the base premium with out-of-pocket cash in case of a cash emergency. Based on this fact, we don’t recommend that you take the maximum loan available from your policies, to be sure that you can exercise the Automatic Premium Loan if needed.
In summary, to start implementing the Infinite Banking Concept is going to require a change in priorities in life and recognizing that controlling the banking function personally is the most important thing that can be done in your financial world.
If you would like to learn how you can grow a substantial amount of cash that you have access to at any time without penalties, is unrelated to the stock market, and will generate income that is not included in your tax return, visit our website at http://InfiniteBankingSimplified.com/ or feel free to email us your questions at ContactUs@InfiniteBankingSimplified.com or call us toll-free at 1-844-443-8422.
Isis B. Palicio, LUTCF, MBA
Pedro A. Palicio, MBA, Ph.D.
Infinite Banking Concepts® Authorized Practitioners
We are experts in designing high cash value dividend-paying whole life policies.